It is reported that Hamriyah Steel is scheduled to be commissioned on January 6th 2010 having begun operational tests in mid November.
Hamriyah Steel is JV of Russian steel and iron ore producer Metalloinvest and Dr Sheikh Sultan Bin Khalifa Bin Zayed Al Nahyan the ruler and emir of Abu Dhabi.
Metalloinvest's subsidiary Ural Steel which will be the supplier of semi finished products for Hamriyah Steel sent 4000 tonnes of billets to the UAE for the operational tests in question.
Mr Shukhrat Nishanov GM of Hamriyah Steel stated that "We plan to produce about 700000 tonnes of rebar in 2010 and 1 million tonnes in 2011. The plant's capacity will be increased gradually from 10,000 tonnes month in January 2010 to 80,000 tonnes November and December 2010.
Accordingly, Hamriyah Steel had already signed a number of agreements of intention with potential consumers of its products in 2010. The plant's stock of orders amounts to 100% of its production plan for 2010. The plant intends to claim 20% of the UAE rebar market by the time it reaches its designed capacity in 2011.
Hamriyah Steel will produce rebar of 10 mm to 40 mm diameter, meeting both local and international standards such as BS4449, ASTM A615 and DIN 488. The plant will be equipped with modern thermo processing technology, designed to improve technical characteristics of low carbon steel by surface hardening and self tempering. Thermo processing will allow Hamriyah Steel to obtain yield strength levels of up to 550 MPa with very good specification figures for welding and elongation.
The report previously said that the equipment supply contract for the Hamriyah Steel was awarded to SMS Meer SpA the Italian subsidiary of German plant maker SMS Meer. The estimated cost of the new plant is USD 156 million.
The decision to build Hamriyah Steel, which will become the second largest rebar producer in UAE, was conditioned by the significant demand from the regional construction sector. Before the crisis, in 2007, the UAE was one of the largest importers of steel, with purchase volumes reaching 9 million tonnes per year. Even now, the UAE's expected demand for rebars in 2010 is estimated at about 5 million tonnes. The reduction of demand in the UAE has caused Hamriyah Steel to consider the possibility of exporting its products to other markets in the Gulf region, including Iran and Egypt. Hamriyah Steel's products may also be delivered to markets in North America and the Middle East. The proximity to end users and the location of the plant close to port will enable it to minimize transportation costs both for the delivery of raw materials, as well as for the delivery of finished products.
(Sourced from Steel Orbis)
